Daniel Loeb's Third Point sees 'most attractive' credit opportunity since 2020

Writing to investors in his Q3 letter, Loeb explained that while spreads are "not extraordinarily wide", the strength of yields combined with dispersion between ‘high quality' and more complex situations provides a strong opportunity. Third Point Investors extends buyback programme as underperformance persists He argued that while overall corporate leverage is high, when the average is disaggregated public credit leverage remains "modest by historical standards", with the higher leverage levels residing in private credit. Loeb pointed to a range of opportunities in "improving credi...